The European Bank for Reconstruction and Development (EBRD) said on Tuesday that it was investing €30 million in bonds issued by Raiffeisenbank Croatia (RBA), by participating in a publicly placed issuance of €300 million that will be listed on Luxembourg Stock Exchange.

This is the EBRD’s fifth purchase of a senior preferred bond eligible under the European Union’s Minimum Requirement for own funds and Eligible Liabilities (MREL) issued by a local financial institution in Croatia, and its third purchase related to RBA.

“We are very happy to be one of the anchor investors in this first international public issuance by Raiffeisenbank Croatia. This successful international placement will further expand the overall pool of investors in the Croatian banking sector,” EBRD Director for Central Europe, Victoria Zinchuk, said.

The new funding will help RBA achieve regulatory compliance, diversify its funding base and increase its loss-absorption capacity and crisis resilience.

The proceeds will also further promote the EBRD’s green agenda in Croatia. RBA will allocate an amount equal to 120 per cent of EBRD investment to its own lending to green projects, mainly in the fields of renewable energy, green buildings and energy efficiency, which would be eligible under the EBRD’s Green Economy Transition (GET) approach.

To date, the EBRD has invested more than €4.4 billion in Croatia in 239 projects.